The authors' purpose is to describe a grading system that reasonably assesses student performance relative to course goals while at the same time provides interim feedback that is accurate, facilitates learning and motivates students. This method has been effectively used in several iterations of a finance course. The authors explain how to design a course around the four categories of knowledge and six cognitive processes proposed by Bloom; design rubrics for a quiz, a final exam, and classroom contribution; and effectively utilize a spreadsheet to calculate grades and provide timely and transparent interim feedback to students.